Avoiding Disaster

[Warren Forex]

I rarely use trailing stops since I am very hands on. I was shorting in the last few minutes and based on News out that the fixing in Japan pushed the rate up for USD/JPY I shorted up to 1.1857 and I have already closed positions on the move below 1.1849

I get many PIPS this way. Trailing Stops usually need about 15 or so.

I am always open to ideas and or suggestions.

[Warren Forex]

I just closed ALL Positions for nice profits on the quick move down to 1.1835

I recently had a PFG Demo Account opened with 5,000,000 US Dollars on July 17, 2007. My balance as of now with ALL Positions closed is $8,402,478.68 US

To bad it was not real funds. I am awaiting a deposit of One Million in real funds and that is why I had the Five Million Demo Account set up. I find it easier to trade Five Million than $50,000 US Dollars which I trade regularly for clients.

[cooter]

	Quote:	Warren Forex
	I recently had a PFG Demo Account opened with 5,000,000 US Dollars on July 17, 2007. My balance as of now with ALL Positions closed is $8,402,478.68 US

It's never the same, especially in the wild wild west of FOREX with real money.

What do you reckon is the minimum or optimal amount of funds that a trader should use to start up a FOREX account?

And does it make any sense to trade "mini" or "micro" lots instead of regular, full lot sizes in FOREX?

[Warren Forex]

Personally I would not trade with less than $10,000 US Dollars. I always have traded standard lots.

It always for me has been good trading at least $50,000 US Dollars in clients funds.

If you trade with $10,000 US Dollars then NEVER trade more than 20% of the capital. That then is 2 positions of 100K for 200K in open Positions.

Use a Stop Loss of 20 PIPS so your MAXIMUM loss would be $400 US Dollars or 4% of your capital.

That is at 100-1 leverage.

I trade at PFG now. If your winning percentage of trades is over 60% you can do good.

My average is always over 80% because of my trading style.

I hope this helps.

[Warren Forex]

Here is a good example of why knowing what is happening fundamentally can make you profits. Within the last hour the USD/JPY took a quick run up 50 PIPS to 1.1900

I shorted it up after 1.1880 in blocks. I read that it was Russian buying of EUR/JPY sending the USD/JPY up. When the buying stopped it came back about 20 PIPS and I closed ALL my positions for a nice quick profit.

Being up for London trading ALSO HELPS.


Have a great Trading day !

[dalby]

i no longer trade Forex per se, but i did take a position in FXE quite some time ago in one of the accounts i manage (basically a dollar hedge).

this is a great lowleverage way to take advantage of forex fwiw. it's a EURUSD etf, basically.

now, i WISH i had 10 lots since i caught the equivalent of about 800 pips but...

it's a consideration for taking a position play for those who want currency exposure, or to hedge against currency exposure

[The Bear]

	Quote:	GCB
	OSO bracket orders are almost always the way to go. But the method you describe seems next best. Strictly speaking, however, you could still get caught short. Before you enter your matching order your computer could lock. The market could then reverse, hit your stop, then reverse again, and the nightmare scenario is still possible, however less likely.

True that GCB, that happened to me before. I tried to enter the stop before my entry, but the stop got hit somehow, then I got in panic mode when i'm stuck in an unexpected position. I've been in un-wanted positions maybe 3-5 times, and lost only $490.00 (oil) at the most...it could have been way worse, I sent a limit order by accident. The worst thing to do is to panic, even though it's probably humanly possible to not. I immediately needed to find out if it was long or short. Once I had the info, I didn't even look at my charts and I hit the market order....I didn't care if I could get price improvement or not...I just wanted out. It was very nerve racking.

Another time same scenario I made a $160.00 gain by fluke from just hitting that market order button again to immediately get out, not even looking at the charts.

The thing I hate is this feeling I get in my stomach and my heart races. It's a horrible situation.

I couldn't imagine trading without hard stops.